The Indian Industry Confederation (CII) has strongly advised the Congress leaders and the administration of the US to think again about the recent hike in the visa fees that was brought up in the Omnibus Spending Bill that particularly targets the IT firms of India and the model of outsourcing business.

CII has advised that the fees for the visa should be applied in a nonbiased and no protectionist manner to entire firms using the visa programs.

US President Barack Obama had signed a law on 18th December, along with the spending package worth $1.8 trillion which also includes the heavy $4000 fee for the H-1B visa and $4500 for L-1 visa. This fee is applicable for the latest visas as well as the extension and renewals of the visas.

According to Sumit Mazumder, CII, National President, this law is highly biased and penalizing and is particularly geared towards India and its IT firms. Firms who has over 50 employees and has over 50% of their US workers on the H-1B and L-1 visas will have to pay the latest fee at the time when the session for fresh visa applications starts off on 1st April 2016.

And as per the CII officials, this fee along with the process of documentation involves processing fees, social security, lawyer and medical that the IT firms of India pay, adding a heavy burden on these firms. This move can have a very negative impact on the US businesses including Fortune 500 firms and their access to the IT talent that is provided by India.

The note also stated that the impact of the increase would lead to more work going offshore and would undercut the steps to build the tech force of the US. It would hinder the ability of the US firms to innovate.